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Mutual Funds & ETFs

Index Fund Investing: The Complete Beginner Guide

Why index funds work, how to choose them and how to build a portfolio.

Sense Central Editorial·September 3, 2026· 9 min read

Index funds work because they exploit a simple truth: most active managers underperform their benchmark after fees. By owning the entire market at near-zero cost, index investors capture nearly all the return without the drag of expensive management.

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Sense Central Editorial

The Sense Central editorial team writes original guides across markets, technology, business and personal finance.

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